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Jakarta, Ideatax -- The Central Bureau of Statistics reported that in the second quarter of 2023, the transportation sector grew by 15.28% compared to the same period the previous year (BPS, 2023). The 15.28% growth was supported by land transportation growth of 19.40%, land transportation sector growth of 10.41%, sea sector growth of 18.26%, and air transportation sector growth of 32.88% (BPS, 2023).
BPS Deputy for Balance Sheet and Analysis Edy Mahmud said that economic growth in the transportation and storage sector was due to an increase in foreign tourist visits and the holding of various national and international scale activities in Indonesia (Antara, 2023).
Seeing the high growth of the transportation and warehousing sector, it is not impossible that the transportation sector can become the leading sector in the future. In fact, some media mentioned that the transportation and logistics sector is the primary support for economic growth in Indonesia (Setiawati, 2023).
However, this doesn't mean the transportation and logistics sector is risk-free. History shows that when COVID-19 hit Indonesia and other countries worldwide, the transportation and tourism sector was one of the sectors that hit quite hard. It is due to social restrictions and decreased demand. Not to mention financial risks such as business competition, global uncertainty, liquidity risk and tax management.
Therefore, to mitigate the risks faced, transportation sector businesses must understand the risks that may arise, including tax management. The transportation business sector is different from other business sectors because of the types of taxes imposed on the transportation business sector.
Generally, corporate taxpayers are subject to income tax at 20% of the profit generated. It is in the Article 17 of the Income Tax Law. However, this does not apply to the transportation business sector, such as land transportation services, sea transportation, and air transportation.
The tax provisions regulate that taxpayers engaged in the shipping and aviation industry are in Article 15 of the Income Tax Law. Article 15 of the Income Tax Law stipulates that the Special Calculation Norm to calculate the net income of certain taxpayers that cannot be applied based on the provisions of Article 16 paragraph (1) or paragraph (3) shall be determined by the Minister of Finance, including domestic flight charters, domestic shipping and overseas shipping and flights.
Income Tax Article 15 on Domestic Flight Charter
Income Tax Article 15 on domestic flight charters is an income tax imposed on aircraft charter activities for domestic flights. The object of this type of tax is all compensation or value of money received or obtained by taxpayers based on charter agreements for the transportation of people and/or goods from one airport to another airport in Indonesia or from Indonesian airports to airports abroad.
Meanwhile, the subject of Income Tax Article 15 on domestic flights is taxpayers who have aviation business activities domiciled in Indonesia and obtain income based on charter agreements.
The effective rate imposed for Income Tax Article 15 on domestic flights is 1.8% multiplied by the taxpayer's gross turnover. The effective rate of 1.8% is derived from the tax rate of 30% multiplied by the income calculation norm of 6%. Thus, the effective rate of Income Tax Article 15 on domestic flights is 1.8%.
Income Tax Article 15 on Domestic Shipping
Income Tax Article 15 on domestic shipping is an income tax imposed on shipping business activities, including the chartering of vessels from one Port to another Port in Indonesia, from one Indonesian Port to an overseas Port, from one overseas Port to a Port in Indonesia and from one overseas Port to an overseas Port.
The object of income tax Article 15 on domestic shipping is the income earned by shipping taxpayers for their business, whether earned within or outside the country.
The effective rate on Income Tax Article 15 on domestic shipping is 1.2% of gross income. The effective rate is from the income tax rate of 30% multiplied by the net income calculation norm of 4%. Thus, effective rate of 1.2% is obtained (DGT, 2023).
Income Tax Article 15 on Overseas Flights and Voyages
Income Tax Article 15 on overseas flights and voyages is an income tax imposed on business activities or shipments from one port/airport to another port/airport in Indonesia or from one port/airport in Indonesia to a port/airport abroad. Thus, Income Tax Article 15 on foreign flights and voyages is not imposed on flights or voyages from abroad to Indonesia.
Income Tax Article 15 on overseas flights and voyages is imposed on taxpayers of overseas flights and voyages. The amount of the imposed rate is 2.64% of gross turnover.
Procedure for reporting Income Tax Article 15
Income Tax Article 15 withholding is declared by the withholder in the Unified Periodic Tax Return as stipulated in the Regulation of Director General of Taxes Number PER-20/PJ/2019. Taxpayers who make deductions should report the Unified Periodic Tax Return no later than twenty days after the tax period ends. Furthermore, the taxpayer who makes the withholding should submit proof of withholding to the withheld taxpayer..
Can an exemption letter be submitted for Income Tax Article 15?
The regulation of the Director General of Taxes number PER-1/PJ/2011 concerning Procedures for Submitting Applications for Exemption from Withholding and/or Collection of Income Tax by Other Parties as amended by PER-21/PJ/2014, does not clearly state whether Income Tax Article 15 be submitted to obtain a certificate of exemption from Income Tax Withholding. In fact, Article 7 of the regulation stipulates that only four types of taxes are in the SKB, namely Income Tax Article 21, Article 22, Article 23, and Income Tax Article 22 Import.
However, in other provisions, we can see that the repayment of Income Tax Article 15 is considered as a repayment of Income Tax Article 23. It is as in the Circular Letter of the Director General of Taxes number SE-35/PJ.4/1996 concerning the Norms for Calculating Net Income Specifically for Taxpayers Conducting Domestic Aviation Business (General Income Tax Series - 40).
The provision stipulates that the repayment of Income Tax Article 15 for aviation companies is a repayment of Income Tax Article 23 that can be a credit against the income tax payable in the Annual Income Tax Return for the relevant tax year. Since the repayment of Income Tax Article 15 is similar to the payment of Income Tax Article 23, the withholding of Income Tax Article 15 should be exempted if the taxpayer's condition meets the regulations of PER-1/PJ/2011 jo PER-21/PJ/2014.
References
Antara. (2023, May 5). BPS catat sektor transportasi tumbuh 15,93 persen pada triwulan I 2023. Retrieved from Antara: https://www.antaranews.com/berita/3521937/bps-catat-sektor-transportasi-tumbuh-1593-persen-pada-triwulan-i-2023#:~:text=Pertumbuhan%20kedua%20sektor%20tersebut%20disebabkan,beberapa%20acara%20nasional%20dan%20internasional.
BPS. (2023, November 05). [Seri 2010] Laju Pertumbuhan PDB Seri 2010 (Persen), 2023. Retrieved from Badan Pusat Statistik: https://www.bps.go.id/indicator/11/104/1/-seri-2010-laju-pertumbuhan-pdb-seri-2010.html
DJP. (2023, Oktober 05). Income Tax Pasal 15. Retrieved from Direktorat Jenderal Pajak: https://pajak.go.id/id/Income Tax-pasal-15
Setiawati, S. (2023, Mei 05). Transportasi & Logistik Penopang Ekonomi RI, Cek Datanya. Retrieved from CNBC: https://www.cnbcindonesia.com/market/20230505135240-17-434784/transportasi-logistik-penopang-ekonomi-ri-cek-datanya
